Hindery in YankeeNets Talks

8/03/2001 9:52 AM Eastern

By: Mike Farrell & R. Thomas Umstead

Former AT&T Broadband president Leo J. Hindery Jr. -- the architectbehind cable's consolidation trend -- is in negotiations to become chairman, CEOand an investor in a new regional cable-sports network that will hold the TVrights for YankeeNets LLC, a sports-team holding company formed last year.

Hindery declined comment. But sources close to the situation said he iswithin weeks of signing a deal to head up 'Newco' -- the would-be pay TV home ofMajor League Baseball's New York Yankees and the National BasketballAssociation's New Jersey Nets.

Games from the National Hockey League's New Jersey Devils, also owned byYankeeNets, won't become available until 2007.

YankeeNets has been seeking to raise about $200 million by selling aone-third interest in the potential New York-area network for months. Accordingto sources, likely investors include Goldman, Sachs & Co. and QuadrangleGroup LLC, a New York investment boutique with ties to the media industry.

Officials at Goldman and Quadrangle declined comment.

Hiring Hindery would appear to squeeze out Harvey Schiller, the former TurnerSports executive who was brought in as chairman of YankeeNets in February 2000.But sources close to the situation said Schiller, 61, would remain withYankeeNets, and that he never intended to run the network.

If Hindery is appointed -- and there is still a possibility that negotiationscould break down -- one of cable's most respected and popular figures wouldreturn to the industry after a two-year hiatus.

Hindery would step in at a crucial time for YankeeNets. Formed in 1999, thegroup severed its ties earlier this year with Madison Square Garden Network --the regional sports network owned by Cablevision Systems Corp. -- after its10-year contract with the programmer expired.